I bet the price will be right around that 587-600 mark, Verizon lowered the retail price on phones quite a bit when they got rid of 1 year contracts. Currently the only phone that costs over 600 is the iPhone.

$587 is the cost to verizon per phone. Full retail will likely be in the $599-$699 range.

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VZW is not paying that much. Phone mark up is crazy high. The landed cost to stores is less than $300 and this is based on previous device cost. Phones are marked up to force folks into getting contracts and get the discount.

The non Verizon price will be close to $700, if purchased at Best Buy, since are always significantly higher.

VZW revenue stream plans on either getting margin for locked in contracts, or a nice fat profit from the phone at retail.

VZW is not paying that much. Phone mark up is crazy high. The landed cost to stores is less than $300 and this is based on previous device cost. Phones are marked up to force folks into getting contracts and get the discount.

The non Verizon price will be clause to $700, if purchased at Best Buy, since every are always significantly higher.

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As a former mgr for vzw I can assure you that they make little, if any, money on full retail phones. There is no money in selling a phone off contract, the money is in locking people into 2 year contracts. The image above seems to be from an inventory reconciliation form, that is the only document I saw that gave the actual unit cost per item. Inventory is done every month in all stores. Or this could be an invoice from a shipping warehouse.

We don't have Costco's here in Oklahoma, but we do have Sam's Club and from what I understand, they have pretty similar business models. I know that a majority of revenue at Sam's is membership fees and their profit margins on products are extremely low; especially in electronics (I believe they mark up is around 1% on TVs, if that). I've heard a lot of people talk about going to Costco to buy their phones, but what kind of price difference do you see between Costco and a VWZ store on the majority of top-tier phones? What ever that difference is should give you a good idea of VZW's markup on phones and what kind of kick up might be seen on this 587 price point...

We don't have Costco's here in Oklahoma, but we do have Sam's Club and from what I understand, they have pretty similar business models. I know that a majority of revenue at Sam's is membership fees and their profit margins on products are extremely low; especially in electronics (I believe they mark up is around 1% on TVs, if that). I've heard a lot of people talk about going to Costco to buy their phones, but what kind of price difference do you see between Costco and a VWZ store on the majority of top-tier phones? What ever that difference is should give you a good idea of VZW's markup on phones and what kind of kick up might be seen on this 587 price point...

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When I bought my younger brother the Droid Inc 2, I got it for $69 at Costco and it was still $179 at my Verizon store.

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